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OTA Corporation Completed the Following Transactions as Part of Its

question 12

Essay

OTA Corporation completed the following transactions as part of its sales/collection process.Record each transaction in general journal format.a.Sold consulting services for cash, $500.b.Sold merchandise with a cost of $100 on account for $300.c.Paid a common carrier $50 to ship the merchandise.d.Collected cash for sale on account, $200.e.Estimated bad debts for the year, $80.


Definitions:

Product

Any item or service offered for sale, designed to meet a specific need or demand in the market.

Service

Making a contribution to the welfare of others; the product which is an action or activity done for others for a fee.

Premium

Refers to a payment made for insurance coverage or an amount paid for a product/service above its standard cost.

Merchandise

Goods to be bought and sold, typically in a retail environment.

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